3.5.1 Instead of the final declaration, I get an “Outstanding Reporting Requirements” warning that says, “Step 2: Account Registration is incomplete based on your responses in Step 1” and that I need to register client trust accounts maintained during the reporting period OR indicate why I am unable to provide account information using the options at the bottom of the Why am I getting this error?
Please check to make sure all of your accounts have been registered in Step 2. If all your accounts have been registered, the required account ending balance may be missing in Step 2. You must provide the account ending balance as of December 31 of the reporting period or the date the account was closed.
If all your accounts have been registered and each account has a balance, please review your responses in Step 1. If you chose multiple “Yes” answers requiring trust account registration, for example, in Step 1, in response to question 1 (IOLTAs), you selected “Yes, I will provide or update IOLTA (or similar pooled) account information, including the balance as of December 31, 2025, via My State Bar Profile …” and, in response to question 2 (non-IOLTAs), you also selected “Yes, I will provide or update non-IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile …,” based on your selected responses you are required to register both an IOLTA and a non-IOLTA trust account via My State Bar Profile. If you only have one trust account, please revise your response to either question 1 or question 2. A trust account can never be both an IOLTA and a non-IOLTA.
Similarly, if you selected multiple “Yes” responses requiring trust account registration to question 1 (e.g., “Yes, I will provide or update IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile” and “Yes, a firm or organization I am currently employed by or in practice with will provide or update IOLTA account information, including the balance as of December 31, 2025, via Agency Billing …”), based on your selected responses, you are required to register multiple IOLTAs via My State Bar Profile and Agency Billing. If you only have one IOLTA, please revise your responses to question 1 in Step 1.
How do I register for a class?
You may access the course by logging in to My State Bar Profile and entering the E-learning Portal. In the “What do you want to learn?” search box, type “Ethics School” or “CTA School.” Click “Add to Cart” and complete the checkout process. The course is self-paced and available on demand 24/7. You may save your progress and return to the course at any time, prior to the expiration date. The course must be completed within 90 days of purchase.
How long is Client Trust Accounting School, and will I receive MCLE credit?
The course is approximately one and a half hours long, but you may complete it at your own pace and save your progress.
If you are taking the course as the result of being disciplined by the State Bar, CLE credit is not available. Attorneys completing the course for this purpose must submit a certificate of completion to the Office of Case Management and Supervision upon completion of the course.
If you are taking this course as a condition of an abeyance stipulation related to an Application for Determination of Moral Character, MCLE credit is not available. Individuals completing the course for this purpose must submit a certificate of completion to the Office of Admissions upon conclusion of the course.
When browsing the course catalog, select “CTA School—Client Trust Accounting Rules and Regulations.” Do not select the course that covers similar content (e.g., “Client Trust Accounting Rules and Regulations”). Taking any similar voluntary course will not satisfy your mandatory obligation to complete the course, whether mandated by an order of the California Supreme Court or the State Bar Court, or required by the Office of Admissions. To satisfy a mandatory obligation, you must take the mandatory CTA School course, which is not eligible for MCLE credit.
What does Client Trust Accounting School offer?
Client Trust Accounting (CTA) School provides an overview of the California Rules of Professional Conduct and relevant provisions of the State Bar Act and Rules of the State Bar relating to client trust accounting. The course is designed to help attorneys understand their fiduciary responsibilities, avoid common trust accounting violations, and maintain compliance. It is self-paced and available 24/7 on the State Bar’s E-Learning Portal. It replaces the previously offered live sessions.
Are there other MCLE courses available through the State Bar?
Yes. The State Bar offers additional MCLE courses. For course listings, browse the E-Learning Portal catalog, where all State Bar courses are now available. If you are a California-licensed attorney or registered in the multijurisdictional practice (MJP) program, log in to My State Bar Profile to access the catalog.
When can I expect to receive my certificate of completion?
You will be able to download your certificate from the E-Learning Portal upon completing the course. Be sure to download it within 30 days of completion.
What if I forgot my password?
You will use the same password that you use to log in to My State Bar Profile. If you forgot that password, select “Forgot password?” on that page to reset it.
4.5 Do I need to report non-U.S. bank accounts?
Unless exempt (see FAQ 2.3, above), California licensees, regardless of where they practice, must still comply with the CTAPP reporting requirements. Licensees must report and register each and every trust account in any location if (1) they acted as a signatory or exercised managerial or primary administrative oversight for a trust account held pursuant to rule 1.15 of the California Rules of Professional Conduct, or (2) were otherwise responsible for complying with any of the requirements or prohibitions in rule 1.15 of the California Rules of Professional Conduct other than the disclosure and agreement requirements in rule 1.15(b) pertaining to depositing a flat fee paid in advance into a lawyer’s or law firm’s operating account (e.g., responsibilities for safekeeping of funds, to identify and discharge liens, notify clients that funds have been received, etc.).
Currently, CTAPP reporting features do not allow licensees or firm administrators to enter non-U.S. routing and account numbers. Therefore, for all non-U.S. trust accounts, in Step 1 (Annual Client Trust Account Reporting), please check the box next to “Yes, I will provide or update IOLTA and/or non-IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile” for the appropriate question, depending on the type of account. Then, during Step 2 (Account Registration), check the checkbox next to “Other” under the sentence, “If you selected Yes to the IOLTA or Non-IOLTA question in Step 1, but are unable to register that IOLTA (CA or Non-CA) and/or Non-IOLTA because you do not have some of the required information, please describe why below,” and, in the box provided, list all non-U.S. bank accounts, including bank name, account number, and country of origin. In future years, we expect enhancements to the reporting application will make it possible for licensees and agencies to report non-U.S. trust account information.
4.4 I have an IOLTA account outside California. In question 2 of the Step 3 (Self-Assessment), how can I affirm that any funds held in a California IOLTA account are maintained in an IOLTA-eligible institution identified on the State Bar of California’s website if the account is held outside California by an institution that is not on the approved list?
Under Business and Professions Code section 6212, attorneys that established an IOLTA account pursuant to subdivision (a) of Business and Professions Code section 6211, may hold IOLTA accounts only at eligible financial institutions. Rule 1.15(a) of the California Rules of Professional Conduct generally requires that trust accounts for California clients be maintained in California. You are permitted to hold client funds in an IOLTA account outside California if your client is from somewhere other than California or if your California client has a substantial relationship with the other jurisdiction and has provided written consent. If your practice meets those criteria and you do not have a California IOLTA, you may select “I do not have a California IOLTA” as your response.
4.3 How do I report IOLTA accounts outside of California?
In general, under rule 1.15(a) of the Rules of Professional Conduct, a licensee’s trust accounts must be maintained in California, or, with the written consent of the client, in another jurisdiction where there is a substantial relationship between the client or the client’s business and that other jurisdiction. Therefore, if licensees are entitled to hold IOLTA accounts outside of California, they will need to register those accounts as non-CA IOLTA accounts by selecting “Add Account” in My State Bar Profile, or, if using the Agency Billing application, selecting “Manage Accounts.”
No. The certificate should be mailed since it must include the $50 processing fee.
How much credit do I get for a self-study education activity?
Providers are not required to give a certificate of attendance for approved self-study education, but they are required to specify the total amount of credit hours available and the number of those total hours allocated to the special requirement areas.
Which areas does the California Board of Legal Specialization certify directly?
Eleven areas:
Admiralty and Maritime Law
Appellate Law
Bankruptcy Law
Criminal Law
Estate Planning, Trust and Probate Law
Family Law
Franchise and Distribution Law
Immigration and Nationality Law
Legal Malpractice Law
Taxation Law
Workers' Compensation Law
How are Special Masters appointed?
When a search warrant is issued for documents under the control of the specified professionals, the court appoints a Special Master to accompany the peace officer serving the warrant.
What is an out-of-state attorney arbitration counsel (OSAAC)?
An out-of-state attorney arbitration counsel is an attorney who is not a licensed attorney of the State Bar of California but who is an active attorney in good standing of and eligible to practice before any Bar of the United States and who has been retained to appear in the course of, or in connection with, an arbitration proceeding in this state.
How many times may I apply as an OSAAC?
There is no hard and fast rule to determine this. It is usually up to the discretion of the arbitrator and/or arbitral panel who may ask the applying attorney to inform him/her how many times the applying attorney has appeared as an OSAAC. The spirit of the rule that the arbitral panel will follow mandates that out-of-state attorneys not abuse OSAAC as a substitute for practicing in California.
If I earn more than 25 hours, can I carry the excess hours forward?
If an attorney earns more than 25 hours during a compliance period, he/she cannot carry the excess hours forward to the next compliance period. [Rule 2.72(D)]
What, if any, information on a candidate can the State Bar release and when can it do so?
Information received during the investigation process or discussed during the evaluation process cannot be released by the commission. Under the statute, information received by the commission is absolutely confidential and it would be a clear-cut violation of the law to divulge how the commission conducted any part of the investigation or the weight given to evidence of a negative or positive nature.
The commission reports its recommendations, in absolute confidence, to the Governor. The rule ". . . prohibits disclosure of any information of any nature to anyone. . ." except as otherwise provided by the statute. The commission does inform a candidate who has been found not qualified of that fact.
The only other exception is if the Governor appoints a person to a trial court who has been found not qualified, the State Bar may make this fact public after due notice to the appointee of its intention to do so.
When the Governor nominates a person to the Supreme Court or Court of Appeal, the JNE Commission submits its recommendation, and the reasons for such recommendation, to the Commission on Judicial Appointments, and appears at the public hearing to present its recommendation and reasons.
How do the Federal Trade Commission’s rules on mortgage assistance relief services (16 Code of Federal Regulations Section 322.1) apply to lawyers who provide loan modification or other forbearance services in California?
The Federal Trade Commission’s rules on mortgage assistance relief services also regulate the provision of loan modification and other forbearance services in California but an exemption is included for attorneys who meet certain criteria. The criteria include compliance with all state laws and regulations relating to mortgage relief assistance. Therefore, the FTC rules require compliance with SB 94 and an attorney who fails to comply with SB 94 would be subject to the penalties provided for in both SB 94 and the federal law.
Are attorneys allowed to accept an advance fee if the borrower agrees to waive the application of SB 94 to their matter?
No. SB 94 does not provide for a waiver of its application by the borrower.
What does the arbitrator look at if there is a written fee agreement?
If there is a written fee agreement, the arbitrator may consider whether the agreement is valid and whether the terms of the agreement (for example, the hourly fee) should be upheld. You should review the fee agreement before the hearing to determine if it answers your questions about the lawyer's charges. If the arbitrator determines the agreement to be valid and that you understood the agreement, the arbitrator will generally use the terms of the agreement as a basis for making the decision.
The arbitrator also looks at the lawyer's "performance" in deciding the amount of the fee. For example, did the lawyer spend too much time on a specific task, or did the lawyer make mistakes that required extra time to fix? You should review the lawyer's bills and performance and decide whether, based on these factors, you believe the fee is too high. You should be prepared to point out specific items that support your belief
What if I have witnesses?
First, you should decide whether the witnesses have important information related directly to your fee dispute with the lawyer. For example, if the witness was with you when you and the lawyer made or changed your agreement, then the witness may have important information relevant to your fee dispute, and you might want to have that person available to testify at the hearing. You should tell the arbitrator and the attorney whose fees you are disputing that you expect to call witnesses and arrange your presentation so that the witnesses can be easily included.
If you have an important witness who does not want to come to the hearing, you may be able to order that person to attend with a subpoena. You should contact the administrator of the fee arbitration program to find out how this is done. You should also contact the administrator if you have any problems scheduling a witness. While it is always better to bring witnesses to the hearing, you may present their testimony and evidence in writing instead. It is up to the arbitrator to decide how much weight to give a witness's testimony.
When will I receive the award?
You should expect to receive an award in the mail about 30 days after the hearing. Please don't call the local program or State Bar because the award will be sent to you automatically.
When do I have to report the misconduct?
Rule 8.3 states that a lawyer shall report “without undue delay.” Rule 8.3 comment [3] provides that the lawyer must report as soon as the lawyer reasonably believes that reporting will not cause material prejudice or damage to the interests of a client of the lawyer or a client of the lawyer’s firm. The Comment also provides that the lawyer should consider other applicable rules, such as rules 1.4 (the duty to communicate); 1.7(b) (material limitation conflict); 5.1 (responsibilities of managerial and supervisorial lawyers); and 5.2 (responsibilities of a subordinate lawyer).
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